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Neronha joins lawsuit to protect Consumer Financial Protection Bureau

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PBN Staff

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02/20/2025

Trending_5 — ATTORNEY GENERAL Peter F. Neronha has joined a lawsuit to stop the Trump administration from shutting down the Consumer Financial Protection Bureau. / COURTESY PETER F. NERONHA

PROVIDENCE – Attorney General Peter F. Neronha has joined a lawsuit to stop the Trump administration from shutting down the Consumer Financial Protection Bureau. In an amicus brief filed Thursday in U.S. District Court in Maryland, a coalition of 21 state attorneys general argues that the administration’s efforts to shutter the federal agency could prevent

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PROVIDENCE – Attorney General Peter F. Neronha has joined a lawsuit to stop the Trump administration from shutting down the Consumer Financial Protection Bureau. In an amicus brief filed Thursday in U.S. District Court in Maryland, a coalition of 21 state attorneys general argues that the administration’s efforts to shutter the federal agency could prevent consumers from reporting issues of fraud or deception. The coalition claims that efforts to shut down the CFPB would significantly reduce oversight of very large banks, further harming consumers. The attorneys general warn that this may lead to financial institutions loosening their regulatory compliance, as was seen in the years leading up to the financial crisis. “Fraud, scams and financial crimes are everywhere these days, and this administration seems to want to make it easier for bad actors to swindle Americans,” Neronha said. “Consumer protection is an issue that unites people from all over the political spectrum, as it should. We must protect American consumers from nefarious and predatory individuals and businesses; look no further than the Great Recession of 2008 to understand why.” On Feb. 8, the Trump administration ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down an agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal. Russell Vought, the newly installed director of the Office of Management and Budget, directed the CFPB to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective and to stop investigative work and not begin any new investigations. The email also ordered the bureau to “cease all supervision and examination activity.” The agency has been a target of conservatives since President Barack Obama pushed to include it in the 2010 financial reform legislation that followed the 2007-2008 financial crisis. Other state attorneys general joining the lawsuit are from: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Vermont, Washington, Wisconsin and the District of Columbia. Material from The Associated Press was used in this report.